Metaplanet Inc. acquires a 1 billion yen loan for BTC acquisition

Metaplanet Inc. announced on August 8 that it acquired a 1 billion Yen loan from MMXX Ventures Limited, one of its shareholders. The company will use the entire loan to buy Bitcoin and increase its holdings.

The loan has a 0.1% interest rate per annum and a term of 6 months from its execution date. Metaplanet chose a lump-sum repayment method.

Bitcoin’s price at the time of writing is $57,588. Metaplanet will acquire approximately 118.414 BTC as per BTC’s current market price. Data from Bitcoin Treasuries shows that Metaplanet Inc. currently owns 246 BTC as of July 22. 

Metaplanet Inc. commented that on June 28, a unanimous decision by its stakeholders diverted the company’s focus to BTC and related businesses. The company has partnered with multiple firms within the BTC space, including Microstrategy, Bitcoin Magazine, and Hoseki.

Since Metaplanet announced its involvement in BTC investments in April, the company’s stock price has significantly increased. Google Finance data indicates that Metaplanet’s stock prices have increased by over 290% since April. 

Metaplanet Inc. plans to raise 10 billion Yen for BTC investment

The Japanese investment company recently tweeted about its decision to raise funds through gratis allotment of stock acquisition rights to all its common stakeholders. Metaplanet mentioned that the decision came after an extensive Board of Directors meeting on August 6. Most of the funds from the process will go toward more BTC acquisitions.

*Metaplanet announces ¥10.08 billion Gratis Allotment of Stock Acquisition Rights; proceeds to fund additional purchases of $BTC* pic.twitter.com/4OdTFdHnfF

— Metaplanet Inc. (@Metaplanet_JP) August 6, 2024

The company will offer one stock acquisition right per one common share held by shareholders. Metaplanet confirmed that the rights distribution would begin on September 5 in proportion to every stakeholder’s shareholding ratio. The exercise will last until October 15, after which the company will acquire every right shareholders won’t have acted upon.

The Japanese firm  issued 18,166,930 common shares as of August 1, meaning the rights allocated will also be 18,166,930. The firm deducted 2,288 shares for its treasury before settling on the final number of shares. The set price for every acquisition right is 555 Yen. Metaplanet expects over 10 billion Yen from the exercise, assuming shareholders act upon every right.

From the 10 billion Yen, Metaplanet plans to use 8.5 billion yen to buy BTC between September and December this year. The company will redirect 1 billion yen to redeeming corporate bonds and 500 million yen to working capital.

Metaplanet adopts BTC as its strategic treasury reserve asset

*Strategic Treasury Transformation and Bitcoin Adoption by Metaplanet* pic.twitter.com/Uz5RxkBV2D

— Metaplanet Inc. (@Metaplanet_JP) May 13, 2024

In May, Metaplanet Inc. made Bitcoin its strategic treasury reserve asset as a strategic shift to its treasury management. The company discussed issues like the weak Yen, high government debt levels, and long periods of high interest rates contributing to Japan’s economic pressure. 

Metaplanet Inc. explained the country’s economic situation, saying that Japan had the highest debt-to-GDP ratio among developed countries, at approximately 255%. The company mentioned the depreciating Yen value, which has decreased by over 50% over the past decade. Other factors, like the Bank of Japan implementing a negative interest policy, put the country on a negative financial trajectory.

The investment company adopted BTC to deal with the growing issues, creating a cushion for the depreciating currency. The plan also aims to take advantage of BTC’s fast growth as it expands into different economies globally. 

Metaplanet also views BTC as a superior currency to fiat options. The company now has a ‘Bitcoin first, Bitcoin only’ vision, appreciating BTC’s limited supply. Metaplanet also plans to issue the liable Yen at every opportunity.